Research Reports
Creation of Value-added Farming in line with the Sixth Industry
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AuthorKim, Taegon
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Publication Date2011.11.30
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Original
Amid the progress of aging of rural population under the petty agriculture structure and expansion of market opening, the income gap between social classes while the reduction of farmhouse income is appearing as a critical issue in agricultural administration.
As one of the solutions to tackle such problems, the sixth industry of agriculture, which boosts additional value and creates jobs by utilizing various resources of agriculture is spreading; it also demonstrates an active and political response. The sixth industry of agriculture basis on the primary industry, agriculture production, rather than the route of the existing and improved simple agriculture structure, which expands areas of farmland or capital scale; it enlarges its business areas to the secondary industry, such as processing of agriculture products and development of specialty and distribution of agriculture products or direct trading to the third industry, urban-rural exchange in order to solve employment and income issues of regions.
Thus, this research aims for exploring trends of Japan and China with respect to the sixth industry and suggesting effects as well as development directions through domestic cases in early stage and further offering development probability and conditions as CB.
In the research result, Korea expects propagation probability of the business that materializes a higher value-added business in addition to creating employment by expanding into processing and direct dealing on the basis of agriculture production by leading the sixth industry of agriculture, namely individual management or farm corporations. First, however, there seems to be problems in lack of spontaneity of regional residents when combining challenges demonstrated in case surveys. Second, activities and project compositions that concentrated on discovery and characteristics of natural resources of regions. Third, regional leaders who play a critical role in the sixth industry.
The system could be an alternative for disadvantageous areas or small stratum through farmhouse unitization where an income gap between social classes is prevalent or decline in earnings is expected due to expansion of market opening.
The foundation of the sixth industry requires unionization by village according to residents' accord. With this, reduction in production costs is possible in the price falling stage of agricultural products. Next, expand employment opportunity by introducing agricultural items, such as vegetable and flowering plant that require simple labor and expands business areas through development of specialty, direct trading, mutual exchange, and tourism, including processed goods using agriculture resources and further create higher value-added businesses.
Researchers: Kim, Tae-Gon, Heo, Joo-Nyung
E-mail address: taegon@krei.re.kr
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